After days of negotiations, a decision has now been made: the judge rules in favour of Microsoft, paving the way for the biggest deal in gaming history.
First the court hearing between Microsoft and the American FTC dragged on forever and resembled a veritable mudslinging match, now a decision has been announced that some were already expecting. Moments ago, the words of Judge Jacqueline Scott Corley went around the world.
In it is ruled in favour of Microsoftwho have been fighting to take over Activision-Blizzard for a year now. However, there have been headwinds from several antitrust agencies in this regard, including the American FTC. But the trade commission’s blockade of the deal is now being stripped of its foundation by the courts. At least that is the decision of Judge Corley. (via The Verge)
The acquisition of Activision by Microsoft has been called the largest in the history of the technology industry. It deserves close scrutiny. That scrutiny has paid off, with Microsoft committing in writing, publicly and in court to keep Call of Duty on the PlayStation on par with the Xbox for 10 years. They have reached an agreement with Nintendo to bring Call of Duty to the Switch. And they’ve made multiple deals to bring Activision’s content to multiple cloud gaming services for the first time.
The court’s jurisdiction in this case is narrow. It must decide whether, despite these current circumstances, the merger should be halted – perhaps even abandoned – pending resolution of the FTC’s administrative action. For the reasons set forth, the Court finds that the FTC has not demonstrated that it will prevail on its claim that this particular vertical merger may substantially lessen competition in this specific industry. To the contrary, the available evidence suggests that consumers will have greater access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.
– Judge Jacqueline Scott Corley
You can read the full decision in a form made available to the public (here).
What happens now?
What happens now remains to be seen. However, the court ruling seems to have made it almost impossible to avert what is probably the most massive deal in gaming history. It is still possible that the FTC will appeal, but this is rather unlikely. In addition, the UK, whose competition authority also did not approve the deal, still stands in Microsoft’s way.
Otherwise, there are no more significant hurdles. There is a chance that Microsoft, having won this case, will now turn its attention to the blockade in the UK, or even try to circumvent the country completely.
On Twitter, Xbox boss Phil Spencer also commented on the decision and expressed his gratitude:
1/We’re grateful to the court for swiftly deciding in our favour. The evidence showed the Activision Blizzard deal is good for the industry and the FTC’s claims about console switching, multi-game subscription services, and cloud don’t reflect the realities of the gaming market.
– Phil Spencer (@XboxP3) July 11, 2023
We are grateful that the court ruled expeditiously in our favour. The evidence has shown that the Activision-Blizzard deal is good for the industry and that the FTC’s claims regarding console switching, multi-gaming subscription services, and cloud do not reflect the reality of the gaming market
What is your opinion on the deal? Do you begrudge Microsoft the victory or do you fear bad things for the gaming industry? What will Sony do now, who have always been the worst opponent of this deal? Post your thoughts in the comments!
